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IRR
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| - | Synonym: Internal Rate of Return
| + | Internal rate of return is a measure of return on an investment that takes both the size and timing of [[Cash|cash]] flows into account. The formula is identical in structure to that used to calculate the [[Yield|yield]] to [[Maturity|maturity]] of a [[Bond|bond]] because it shows not only the [[Total Return|total return]], but takes into account how quickly that return was earned. Sometimes known as [[Annualized Rate|annualized rate]] of return. |
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| - | A measure of return on an investment that takes both the size and timing of [[Cash|cash]] flows into account. The formula is identical in structure to that which is used to calculate the [[Yield|yield]] to [[Maturity|maturity]] of a [[Bond|bond]] because it shows not only the [[Total Return|total return]], but takes into account how quickly that return was earned. Sometimes known as [[Annualized Rate|annualized rate]] of return.
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Current revision
Internal rate of return is a measure of return on an investment that takes both the size and timing of cash flows into account. The formula is identical in structure to that used to calculate the yield to maturity of a bond because it shows not only the total return, but takes into account how quickly that return was earned. Sometimes known as annualized rate of return.